Shares Of InterGlobe Aviation Zoom To 52-Week High A Day After IndiGo Ordered 500 Airbus
IndiGo is set to receive these new planes from 2030 to 2035 and the total value of the order is estimated to be around $50 billion
Shares of InterGlobe Aviation, parent firm of IndiGo, jumped over 2 per cent in the early trade on Tuesday to hit a 52-week high of Rs 2,490. IndiGo, India’s largest airline, on Monday placed an order of 500 Airbus A320 aircraft, the largest-ever order in aviation history.
IndiGo is set to receive these new planes from 2030 to 2035 and the total value of the order is estimated to be around $50 billion. The order includes a combination of A320 neo, A321 neo, and A321 XLR aircraft models. This record order bests that of rival Air India, which had in February signed a deal for 470 aircraft from Airbus (250) and Boeing (220).
At 9.36 am, shares of InterGlobe Aviation were trading at Rs 2,454, up around a per cent on the National Stock Exchange.
Pieter Elbers, CEO of IndiGo, said the airline will have a fleet of 600 aircraft by the end of 2030. "The order will play a significant role in IndiGo's international expansion and will secure the airline for the next ten years," Elbers said.
The low-cost carrier operates around 304 aircraft and has a previous order of 480 aircraft to be delivered during FY24-30.
The CEO was also confident of assessing funding options for the mega order and said that placing the order now would leave the company ample time to plan its domestic and international network as well as pilot requirements.
Global research and broking firm Morgan Stanley, which maintains a positive outlook for InterGlobe Aviation, said with the new order, the company's pending aircraft orders will reach around 1,000. The broking firm also sees market share gains and margin improvement as two key drivers for IndiGo and expects both to be inching up in the near term.
Morgan Stanley has an "overweight" rating for the low-cost carrier, with a price target of Rs 3,126.
Motilal Oswal Financial Services believes said A320neo family aircraft would also help IndiGo lower its operating costs and deliver fuel efficiency with high standards of reliability. "It would also help with its sustainability goals, with the company already having realized carbon reduction of 21 percent in FY16-23," the brokerage said in a report.
Top Headlines
